Doosan Škoda Power IPOs on Prague Stock Exchange

Czech-based company Doosan Škoda Power is one of the leading steam turbine manufacturers and engineering solutions providers worldwide. It is headquartered, and its production facility is based in Pilsen, the Czech Republic, concentrating production, engineering, research and development and management under one roof, supported by its subsidiary in India. The company has deep roots in Czech engineering, tracing its history back to 1869 as part of the renowned Škoda Works, one of the most significant industrial enterprises in Central Europe. Since 2009, it has been a subsidiary of South Korea’s Doosan Group, a global leader in energy and infrastructure.

The IPO attracted strong investor demand, resulting in significant oversubscription across all three groups of investors – institutional, retail and eligible employees. Doosan Škoda Power and its sole shareholder raised approximately CZK696 million and CZK1,82bn, respectively, with the final offer price set at CZK240 per share.

The offering comprised the sale of 6.67m existing shares by its sole shareholder, Doosan Power Systems, along with the issuance of 2.9m new shares by Doosan Škoda Power. Due to the overwhelming demand, the overallotment option of 957,000 shares was fully exercised. Following the IPO, Doosan Power Systems retained a majority stake in the company.

The strong investor interest, particularly from institutional investors, underscores the market’s confidence in Doosan Škoda Power’s robust business model, long-term growth prospects, and leadership in the steam turbine and energy solutions sector. Proceeds from the IPO will support Doosan Škoda Power’s strategic expansion, including investments in production capacity, research and development, and further strengthening its position in the European nuclear power market.

The cross-border team advising on the IPO was led by Prague-based partner Petr Vybíral working closely alongside associate Denisa Jonášová and junior lawyer Jan Vlček. The English law aspects were handled by partner James Roe and associate Adithyan Sreekumar, while the US federal securities law advice was provided by partner Jeff Hendrickson and senior associate Katrien Wilmots. Partner Paul Péporté and senior associate Caroline Motzer were responsible for the Luxembourg law advice. Tax advice was provided by Prague-based senior tax advisor Michal Dušek.

Jiří Krupka, Head of Legal & Business Integrity Department and Chairman of the Supervisory Board of Doosan Škoda Power a.s., said: "The A&O Shearman team was a clear first choice for us as they gave us outstanding support in our journey to success throughout this challenging transaction. Thanks to them, everything went as we had planned from the beginning. It is always great to work with lawyers who really understand your business."